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In an evolving venture capital landscape marked by shrinking valuations and fierce AI competition, Insight Partners is doubling down on its belief in Israeli innovation. Jeff Horing, the founder of Insight Partners and a long-time backer of Israel’s high-tech ecosystem, recently visited the country to reaffirm the firm’s strategic focus—despite macroeconomic uncertainty and shifting global trends. With investments in high-flying names like monday.com, Wix, and Wiz—now being acquired by Google for a reported \$32 billion—Horing’s message was clear: Israeli startups are still among the best bets in tech.
Insight’s shift to early-stage funding signals a major change in its strategy. Once known for late-stage rounds, the firm now pours 87% of its investments into Seed and Series A startups. Horing sees intense competition even at these early stages, with powerhouses like Sequoia and Greylock in the mix. But Insight remains bullish on the country, with \$12.5 billion freshly raised and ready for deployment—suggesting its long-term outlook is anything but cautious.
Israel’s Tech Scene Still Shines Despite Global Headwinds
Jeff Horing’s enduring optimism about Israel’s startup environment comes with context. Insight Partners has evolved from backing mature companies to becoming a major force in nurturing the next generation of tech disruptors. The pivot was driven by growing competition in late-stage deals and a desire to capture more upside from earlier investments.
In a rare public appearance, Horing revealed that Insight has made 15 AI-related investments in Israel, though he acknowledged the country’s lag in foundational AI models and tools. Nevertheless, he remains confident that Israel’s unique mix of military-grade cyber expertise, entrepreneurial culture, and work ethic puts it on a fast-track to AI relevance.
While unicorn creation has slowed compared to the 2021 boom, Horing emphasized that Insight still sees Israel as equal in opportunity to Silicon Valley. Citing recent exits—Own to Salesforce, Run:AI to Nvidia, WalkMe to SAP—he pointed to a robust ecosystem that continues to deliver value despite global slowdowns.
Wix, valued at \$10 billion, was Insight’s first Israeli investment and remains a cornerstone in the firm’s success story. Meanwhile, monday.com has become a talent factory, spinning out five startups. Even as Insight weathered leadership changes, including the exit of Liad Agmon, Horing insists the commitment to Israel is unwavering.
On valuations, Horing described the current environment as one of the most challenging in his career. Startups often appear overvalued, he said, but he argued that this perception can be misleading. Wiz, he noted, “looked expensive every round, but in hindsight, everybody made money.” That insight reinforces Insight’s thesis: strong talent and execution can override conventional valuation metrics.
What Undercode Say:
From an analytical perspective, Insight Partners’ recalibration toward early-stage investing aligns well with broader market dynamics in venture capital. As exit markets remain tight and IPO timelines stretch, VCs are increasingly focusing on startups with long runways and high innovation potential. This approach provides a higher return multiplier, especially in sectors where first-mover advantage is key—like AI and cybersecurity.
Jeff Horing’s recognition of Israel’s global stature in cyber talent is well-founded. Israel contributes disproportionately to global cybersecurity innovation, supported by elite military intelligence units such as Unit 8200. This structure produces technical founders with high domain expertise and proven resilience, making them prime candidates for venture capital investment.
However, Insight’s aggressive stance on valuations—particularly regarding Wiz—underscores a broader trend where intuition and founder pedigree often outweigh traditional financial due diligence. In the case of Wiz, its cybersecurity-first platform and rapid revenue growth created a compelling story, even when conventional metrics suggested caution. This bet paid off, and Insight now holds a high-profile success story as validation of its thesis.
The shift to early-stage also helps mitigate the valuation crunch affecting later-stage deals. By entering the cap table earlier, Insight avoids inflated pricing and gets more equity for its capital. This not only increases potential returns but also strengthens its influence on company strategy and hiring.
Still, the acknowledgment that Israel trails in foundational AI reveals a strategic gap. While there are plenty of AI-adjacent startups—those integrating AI tools into vertical-specific use cases—Israel is yet to produce a true OpenAI or Anthropic equivalent. Horing’s 15 AI investments likely focus on infrastructure, applications, or hybrid solutions, rather than core models.
On the geopolitical front, Insight’s sustained operations in Israel despite conflicts and instability is a signal of institutional resilience. Having a local office led by Dani Aronovitz provides Insight with a real-time pulse on local innovation, reducing information asymmetry and improving investment outcomes.
The departure of Liad Agmon might raise eyebrows, but it doesn’t necessarily signal instability. Agmon’s exit could indicate a generational shift or a transition in leadership focus, rather than a retreat from the region. Horing’s repeated assertion that he’s “all in on Israel” isn’t just rhetoric—it’s part of a broader positioning strategy to dominate the Middle East’s most developed tech hub.
Lastly,
Fact Checker Results:
Wiz’s acquisition by Google for \~\$32B is unconfirmed officially but widely reported.
Insight’s \$12.5B fund was indeed closed in January 2024 and is verified.
Liad Agmon’s departure is accurate and publicly acknowledged.
Prediction:
Over the next 18 to 24 months, Israel is likely to see a new generation of AI-native startups, particularly in niche verticals like cyber defense, developer tools, and enterprise SaaS with embedded AI. Insight Partners, with its early-stage pivot and deep local network, is poised to lead this charge. Expect Insight to back at least one major foundational model startup by 2026 as the ecosystem matures. Meanwhile, the success of Wiz will serve as a blueprint for balancing high valuations with long-term vision—reminding investors that sometimes, the price tag is worth it.
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Reported By: calcalistechcom_3083bb47fb185861b4dd90e3
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